Search: Net interest margin
RBA Glossary definition for Net interest margin
Net interest margin – A measure of the difference between a bank�s interest earnings and interest expenses, expressed as a proportion of their interest-earning assets.
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Banks' Funding Costs and Lending Rates
10 Mar 2012
Bulletin
– March 2012
Lending rates have generally fallen by more than funding costs which, all else being equal, would imply that the major banks' net interest margins have contracted a little. ... However, while lending rates and funding costs are important determinants,
https://www.rba.gov.au/publications/bulletin/2012/mar/5.html
Is Monetary Policy Less Effective When Interest Rates Are Persistently Low? | Conference – 2017
16 Mar 2017
Conferences
Genay and Podjasek (2014) also find that persistently low interest rates depress US banks' net interest margins. ... Importantly, it also holds when financial crises are controlled for. And it operates through the effect of lower rates on net interest
https://www.rba.gov.au/publications/confs/2017/borio-hofmann.html
The Effects of Funding Costs and Risk on Banks' Lending Rates
10 Mar 2011
Bulletin
– March 2011
Australian banks' net interest margins are largely driven by movements in interest rates on loans relative to debt funding costs. ... While the net interest margins of the individual major banks differ, the average margin for these banks has fluctuated
https://www.rba.gov.au/publications/bulletin/2011/mar/6.html
Developments in Banks' Funding Costs and Lending Rates
22 Mar 2013
Bulletin
– March 2013
This article updates previous Reserve Bank research on changes in the composition and cost of banks' funding and the impact of these changes on lending rates (Deans and Stewart 2012). The main findings are that the absolute levels of funding costs
https://www.rba.gov.au/publications/bulletin/2013/mar/7.html
Bank Interest Rate Margins
10 May 1992
Bulletin
– May 1992
There was then, and remains, a widespread perception that banks have widened their interest margins by failing to pass on to borrowers the full extent of falls in their funding costs. ... Other fees, such as line fees, are charged continuously over the
https://www.rba.gov.au/publications/bulletin/1992/may/1.html
Competition: Profitability and Margins | Conference – 1991
21 Jun 1991
Conferences
The net interest margin suffered badly in 1989 due to non-receipt of LDC interest. ... The use of ratios of operating costs and net interest income to average assets as measures of efficiency and margins is useful for comparing one six months with another
https://www.rba.gov.au/publications/confs/1991/phelps.html
Low Interest Rates and Bank Profitability – The International Experience So Far
17 Jun 2021
Bulletin
– June 2021
This article discusses the effect that low interest rates may have on bank profits, and reviews the experience of banks in economies that have had very low interest rates for an extended period.
https://www.rba.gov.au/publications/bulletin/2021/jun/low-interest-rates-and-bank-profitability-the-international-experience-so-far.html
Bulletin
18 Apr 2024
Bulletin
Insights into the economy and financial system from teams throughout the Reserve Bank of Australia
https://www.rba.gov.au/publications/bulletin/
Bank Fees in Australia
10 Jul 2001
Bulletin
– July 2001
Graph 1. In earlier analysis published by the Reserve Bank it was concluded that these reductions in net interest margins in recent years have significantly exceeded the increases in banks' fee ... margins. It is also informative to compare the changes
https://www.rba.gov.au/publications/bulletin/2001/jul/1.html
The Impact of the Capital Market Turbulence on Banks' Funding Costs
10 Jun 2009
Bulletin
– June 2009
Information published by the major banks in their financial statements on net interest margins (NIM) for their Australian operations shows that, in the half-year to March 2009, the average NIM ... Overall, banks' net interest margins have risen a little
https://www.rba.gov.au/publications/bulletin/2009/jun/1.html